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2022-02-16 18:35

Analog Devices Inc closed up 4.0% after reporting financial results for the first quarter of fiscal 2022. Analog Devices is an American multinational semiconductor firm based in Wilmington, Massachusetts that excels in data conversion, signal processing, and power management technologies.
Q1 financial performance
Superseding the analyst’s expectations, the company has reported revenue of $2.68 billion which is an increase of 72.2% for its first quarter fiscal 2022. This is a double-digit year-over-year increase for the company.

For the first quarter fiscal 2022, the company’s operating cash flow was $3.16 billion while a free cash flow of $2.78 billion has been recorded or 33% of revenue on a trailing yearly basis.
The company’s total income dropped to $280.1 million or 50 cents a share, compared to $388.5 million in the year-ago period. In this quarter the gross margin of the company also decreased by 52.2%.

Analog Devices has managed to accomplish a $2.5 billion accelerated share repurchase program. The company has also retired 14.4 million shares. And lastly the company has also reported a 10% rise in dividend, which is a 19th raise in the timespan of last 18 years.

Vincent Roche, President and CEO said:

“ADI delivered its fourth consecutive quarter of record revenue with momentum across all end markets and geographies. The growing demand for our solutions and our commitment to operational excellence enabled adjusted gross margin, operating margin and EPS to achieve new highs. With higher bookings and backlog as well as additional capacity investments, I am confident we will sustain this level of performance throughout 2022.”

Guidance for the future
The company has provided its financial outlook for the second quarter of fiscal 2022. Expected revenue in the second quarter is $2.80 billion while the operating margin will be around 26.5% at the midpoint of its revenue forecast. The adjusted operating margin is anticipated to be nearly 46.5%. However, the company is expected $1.14 to be its earnings per share and adjusted EPS to be $2.07.

The company's fiscal 2022 second quarter projection is based on current estimates, and ultimate results may differ considerably due to a variety of variables, including the critical risks noted at the conclusion of this announcement. These statements transcend any previous comments in ADI news releases on their company's future, and ADI disclaims any need to amend these forward-looking statements. The adjusted results and adjusted expected results provided by the company are non-GAAP financial measurements.

The stock is still down more than 10% from its high in mid-November. The $85 billion company trades at a PE multiple of 48.58.